The panic index reaches 20, entering the opportunity zone

Overnight, the Nasdaq once again saw a massive outflow of funds amid the escalation of the conflict between Russia and Ukraine and the expectation of the imminent tightening of the Federal Reserve, closing down more than 4%. Fortunately, Bitcoin once again withstood the brutal Nasdaq, with a 24-hour decline of less than 2%. This shows that there are fewer and fewer traditional funds participating in the currency circle through programs. In the future, with the continuous holding and buying of long-term holders and various whales, coupled with the bottoming shock of the US stock market, the price of Bitcoin will once again usher in an independent and strong market. It should be noted that the decline of the S&P 500 from January to April this year has created the largest decline since 1932. The fact that Bitcoin can stabilize its market value in such a big bear market has already explained certain problems. The first half of the year will soon be over, and surprises will gradually appear in the second half of the year.

Belgium began accepting registrations for the crypto industry on Sunday. Services such as cryptocurrency exchanges and wallet hosting can apply for registration with the regulatory authority to ensure compliance with the EU's anti-money laundering directive. This European country has also chosen to regulate and embrace Bitcoin, and it is getting closer and closer to becoming a global currency.

Robinhood provides crypto wallet services to 2 million customers, which means that the online trading platform has built a bridge between traditional and crypto transactions, and will also lower the threshold for traditional funds to participate in crypto investment and storage.

The trading volume of crypto investment products has been declining for six consecutive months, and the trading volume has dropped by 83.8% from the historical high. This data basically tells us that dawn is not far away. According to the conversion of various investment markets in the past, when the trading volume shrinks 10 times from the high point, it is often the real bottom. At present, it is very close to the target of shrinking by 90%, and a horizontal line will be the big bottom.

The Ethereum network's revenue in the first quarter reached $2.4 billion, a year-on-year increase of 46%. Based on Ethereum's current market value of $340 billion, Ethereum's price-to-earnings ratio is 35 times, while Nasdaq's price-to-earnings ratio is 55.3. This shows that compared with the Nasdaq, it is not difficult for Ethereum to rise to a price-to-earnings ratio of 50 times as it is expected to continue to develop at a high speed. Therefore, once the market recovers, Ethereum should quickly return to above $4,000.

The panic index reaches 20, entering the opportunity zone.

Coin News:

Bitcoin: Europe and the United States are resting on the weekend, so the volatility is not expected to be too large. If a new low around 37,700 is created in the short term, there should be a wave of long opportunities. It will be difficult for the price to continue to fall unless traditional funds dump the market.

ETH: Although its value is not very underestimated, it is true that such a growing public chain can create a bubble. If Ethereum rises above 8,000, I think it may enter a bubble area. It is not expensive at the moment, so it doesn’t hurt to buy some and hold on to it.

The core developers said that there is still no consensus on removing the difficulty bomb, which means that it is still uncertain when 2.0 will be upgraded, but it is estimated to be around the end of the year.

APE: Opensea supports APE as a payment method. This coin has been very popular recently, and its transaction volume has surpassed Bitcoin to become the number one in the market. There are still opportunities for new highs in the future, but due to its great volatility, it is more speculative, and value investment is no longer possible at this position.